At 6 requests/user/day (totaling 18,000 queries/mo), running Customer support chatbot on Text Embedding 004 costs $1.26 / month ($0.0126 / user / mo).
Total expected API invoice for 100 Active Users generating 18,000 queries.
Direct inference cost per MAU to model your SaaS pricing tiers and gross margins.
Savings generated by exploiting 70% cache hits on prompt context.
| Model | Provider | Monthly Spend (100 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 004 (Current) | $1.26 | $0.0126 | $15.12 | 8,192 | |
| Text Embedding 3 (Small) | openai | $1.26 | $0.0126 | $15.12 | 8,191 |
| Text Embedding 3 (Large) | openai | $8.19 | $0.0819 | $98.28 | 8,191 |
At 6 queries per user/day with Text Embedding 004, the estimated cost is $0.0126 per monthly active user (MAU). Total monthly bill for 100 Active Users is $1.26.
Assuming a 70% cache hit rate on repeated system and context tokens, prompt caching saves $0.00 per month ($0.00/year) on Text Embedding 004.
With a direct COGS of $0.0126 per user/month on Text Embedding 004, charging at least $0.063 per user/month ensures an 80%+ software gross margin.